05.05.2020 Catarina Monteiro Pires

Coronavirus - Legal Implications: Contract Performance

[This article is part of a guide by Morais Leitão dedicated to the legal implications of the - at the time - new coronavirus.]

One area for which the new coronavirus has raised challenges is the performance of commercial contracts. There are several problems that may arise and, although each one requires an analysis of the specific case and the respective legal consequences, we shall list some of the commonest: late payment; difficulties with or suspension of production of goods due to lack of supply or transport; labour shortage; decrease in income expected from the performance of the contract; impossibility to deliver goods; impossibility to access the place to deliver goods, provide services or fulfil other obligations; closure of facilities by legal requirement; closure of facilities by administrative requirement; difficulty or impossibility to achieve the commercial objectives envisaged under the contract; disappearance or reduction in customers; uselessness of the contract; frustration of the purpose of the contract; disappearance or modification of circumstances implied or represented by the parties on formation of the contract; impossibility of obtaining licences or permits; anticipatory breach of contract; insolvency of the other party, among others.

Topics covered:

  • Contracts of sale and purchase
  • Supply contracts
  • Acquisition of companies
  • Distribution contracts
  • Transport contracts
  • Late payments

For more information, please download the document below.